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STARBUCKS | CHIPOTLE | T-MOBILE ANCHORED CENTER & FIRESTONE GROUND LEASE1930 IL Route 83, Round Lake Beach, Illinois 60073
Route 8323,250 VPD
E Rollins Rd33,000 VPD
Hook Dr5,200 VPD
Subject Property
Subject Property
Route 8323,250 VPD
Hook Dr5,200 VPD
NCS Line Station1,684,357 Annual
Ridership
INVESTMENT HIGHLIGHTS
Abundance of Retailers
100 Percent Leased, 14,000-Square Foot Shopping Center with a Free Standing Firestone Ground Lease• Ideal Mix of National and Regional Tenants • All But One of the Tenants are Original to the Center, Operating for 10 Plus Years, and Taking Options
Majority of Tenants are Deemed “Essential Business” and Remain Open
New 10-Year Starbucks Extension • Starbucks Drive-Thru | A Strong Property Amenity
Chipotle and Firestone have Low Rents for their Prime Position(s) in the Property• Several Additional Tenants with Below Market Rents
All Shopping Strip Tenants Operate under Net Leases | Minimal Landlord Responsibilities
Located on a Signalized, Hard-Corner Intersection in the Heart of Round Lake Beach’s Retail Epicenter• Notable Major Retailers in the Area Include Meijer, Walmart, LA Fitness, Jewel-Osco, Hobby Lobby, Jo-
Ann Fabrics, Kohls, Regal Cinemas, Dollar Tree, and More
Heavily Traveled | 56,250 Vehicles Passing per Day Along Rollins Road and Route 83
High Visibility | Over 640 Feet of Frontage on Route 83
Situated Adjacent to Metra’s North Central Service Train Station | 1,684,357 Annual Ridership | Connecting Antioch to Chicago Union Station
HeavilyTraveled
Long OperatingHistory
HighlyPopulated
Starbucks | Chipotle | T-Mobile Anchored Center & Firestone Ground Lease1930 IL Route 83, Round Lake Beach, Illinois 60073
Price $8,200,000 Cap Rate 6.51%
Price/ SF $379.51
Gross Leasable Area 21,607 SF
Year Built 2008
Lot Size 3.00 Acres +/-
Parcel Number 6-16-200-072
Parking 76 Surface Spaces +/-
Current Rent $538,278
Total Reimbursements $204,087
Effective Gross Income $742,365
Expenses $208,758
NOI $533,607
FINANCIAL SUMMARY PROPOSED FINANCING
LTV 70%
Interest Rate | Amortization 4.25% | 25 Years
Down Payment $2,460,000
First Trust Deed/Mortgage $5,740,000
Debt Service $373,149
Debt Coverage Ratio 1.43
Net Cash Flow After Debt Services | Return % $160,458 | 6.52%
Principal Reduction $131,746
Total Return | Return % $292,204 | 11.88%
Starbucks 1,750 8.10% 10/26/2008 2/28/2029 20 Years Base Current $6,271 $75,250 $43.00 - 14% 2, 5-Year Net
Retail, Suite 101 - 3/1/2024 $7,058 $84,700 $48.40 13%
Option 1 3/1/2029 $7,764 $93,170 $53.24 10%
Option 2 3/1/2034 $8,540 $102,480 $58.56 10%
Notes: Mgmt/Admin fee shall not exceed 15 percent of CAM. Controllable CAM cap of 106 percent of prior year. Tenants rent is reduced by $1/psf during the period that Chipotle is open for business. Current rent is reduced by $1/psf.
T-Mobile 2,446 11.32% 1/27/2009 1/31/2024 15 Years Base Current $8,269 $99,225 $40.57 - 18% 2, 5-Year Net
Retail, Suite 102 Option 1 2/1/2024 $9,096 $109,148 $44.62 10%
Option 2 2/1/2029 $10,004 $120,050 $49.08 10%
Notes: Mgmt/Admin fee shall not exceed 10 percent of controllable CAM. CAM cap of 105 percent of prior year.
Chiro-One Wellness Center 2,304 10.66% 8/12/2009 8/31/2024 15 Years Option 1 Current $4,435 $53,222 $23.10 - 10% 1, 5-Year Net
Retail, Suite 103/104 - 9/1/2021 $4,524 $54,287 $23.56 2%
- 9/1/2022 $4,614 $55,373 $24.03 2%
- 9/1/2023 $4,707 $56,480 $24.51 2%
Option 2 9/1/2024 - TBD - -
Notes: Mgmt/Admin fee shall not exceed 15 percent of CAM. Controllable Cam cap of 115 percent of prior year.
Sport Clips 1,502 6.95% 11/1/2008 11/30/2023 15 Years Base Current $3,487 $41,846 $27.86 - 8% None Net
Retail, Suite 105 - 12/1/2020 $3,557 $42,687 $28.42 2%
- 12/1/2021 $3,629 $43,543 $28.99 2%
- 12/1/2022 $3,701 $44,414 $29.57 2%
Notes: Management fee shall not exceed five percent of CAM
Jimmy John's Sandwiches 1,503 6.96% 12/1/2008 1/31/2024 15 Years Option 2 Current $3,545 $42,535 $28.30 - 8% 1, 5-Year Net
Retail, Suite 106 Option 3 2/1/2024 $4,086 $49,028 $32.62 15%
Notes: Management fee shall not exceed five percent of CAM.
Little Caesar's 1,501 6.95% 11/29/2008 1/31/2024 15 Years Option 2 Current $3,438 $41,250 $27.48 - 8% 1, 5-Year Net
Retail, Suite 107 Option 3 2/1/2024 $3,781 $45,375 $30.23 10%
Notes: Mgmt/Admin fee shall not exceed 10 percent of CAM. CAM cap of 105 percent of prior year.
Tenant /Suite #SF
Leased% of
Total SFStart End
Term of Occupancy
(Yrs)
Rent Schedule% of
Total RentRenewal Options
Lease TypePeriod Changes on
Monthly Rent
Annual Rent
Rent/ SF
Increase
RENT ROLL
Nail Café Beach 800 3.70% 4/13/2015 4/30/2022 7 Years Base Current $1,467 $17,600 $22.00 - 3% 1, 7-Year Net
Retail, Suite 108 Option 1 5/1/2022 $1,613 $19,360 $24.20 10%
Notes: Mgmt/Admin fee shall not exceed 15 percent of CAM.
Chipotle Mexican Grill 2,200 10.18% 10/6/2010 10/31/2025 15 Years Base Current $4,840 $58,080 $26.40 - 11% 3, 5-Year Net
Retail, Suite 109 - 11/1/2020 $5,082 $60,984 $27.72 5%
Option 1 11/1/2025 $5,590 $67,078 $30.49 10%
Option 2 11/1/2030 $6,149 $73,788 $33.54 10%
Option 3 11/1/2035 $6,765 $81,180 $36.90 10%
Notes: Mgmt/Admin fee shall not exceed 10 percent of CAM. Controllable CAM cap of 105 percent of prior year.
Firestone 7,575 35.06% 1/12/2009 1/11/2029 20 Years Base Current $9,065 $108,780 $14.36 - 20% 4, 5-Year Ground
Retail, Suite 110 - 1/1/2024 $9,971 $119,657 $15.80 10%
Option 1 1/12/2029 $10,969 $131,622 $17.38 10%
Option 2 1/12/2034 $12,065 $144,785 $19.11 10%
Option 3 1/12/2039 $13,272 $159,263 $21.02 10%
Option 4 1/12/2044 $14,599 $175,190 $23.13 10%
Notes: Firestone is a ground lease. Square footage is approximate. Rent shall increase by 10% every five years, including option periods.
Landlord Utility Room 26 0.12% - - - Base Current $0 - $0.00 - 0% N/A -
Notes: N/A
Occupied 21,607 100% $537,788 $24.89
Vacant 0 0% $0 $0.00
Total 21,607 100% $537,788 $24.89
Tenant /Suite #SF
Leased% of
Total SFStart End
Term of Occupancy
(Yrs)
Rent Schedule% of
Total RentRenewal Options
Lease TypePeriod Changes on
Monthly Rent
Annual Rent
Rent/ SF
Increase
RENT ROLL
REIMBURSEMENTS
TenantAnnual Expense Reimbursements
Admin Fee Gross IncomeTaxes CAM/Ins Total PSF
Starbucks $9,994 $13,134 $23,127 $1.07 $681 $23,808
T-Mobile Central $13,942 $9,934 $23,876 $1.11 $316 $24,192
Chiro-One Wellness Center $13,132 $9,142 $22,274 $1.03 $1,303 $23,577
Tag Team dba Sports Clips $8,562 $8,619 $17,182 $0.80 $327 $17,509
Jimmy John's Sandwiches $8,570 $8,834 $17,404 $0.81 $982 $18,385
Little Caesar's Enterprises $8,558 $8,072 $16,630 $0.77 $612 $17,242
Nail Café Beach $4,421 $3,733 $8,155 $0.38 $2,014 $10,168
Chipotle Mexican Grill $12,538 $16,163 $28,701 $1.33 $569 $29,270
Firestone $39,936 $0 $39,936 $1.85 $0 $39,936
Total $119,654 $77,631 $197,285 $9.13 $6,802 $204,087
CASH FLOW YEAR ONE - STARTING 7/01/2020 CAM EXPENSE BREAKDOWN
Base Rent Current Per SF
Occupied Space $538,278 $24.91
Available Space $0 -
Gross Potential Rent $538,278 $24.91
Expense Reimbursements
Real Estate Taxes $119,654 $5.54
CAM/Insurance $77,631 $3.59
Administrative Fee $6,802 $0.31
Total Expense Reimbursements $204,087 $9.45
Effective Gross Income $742,365 $34.36
Expenses
Real Estate Taxes $120,061 $5.56
Insurance $3,952 $0.18
CAM $77,943 $3.61
Management Fee $6,802 $0.31
Total Expenses $208,758 $9.66
Net Operating Income $533,607 $24.70
CAM Current Per SF
Water Bill - Tenant Spaces $20,777 $0.96
Snow Removal $18,135 $0.84
Trash Removal $18,037 $0.83
Porter Service $4,680 $0.22
Landscaping $4,040 $0.19
Water, Sewer & Irrigation $3,233 $0.15
Parking Lot Sweeping $3,000 $0.14
Electricity House $2,748 $0.13
Permits & Inspection $1,582 $0.07
Security Monitoring $637 $0.03
Irrigation R&M $500 $0.02
Sidewalk Repair R&M $500 $0.02
Supplies $75 $0.00
Total CAM $77,943 $3.61
TENANT PROFILE | STARBUCKS
� Leading Coffee Company and Coffeehouse Chain
� Starbucks Top Line to Grow by 10 Percent in 2019 (Forbes)
� One of 10 “Worlds Most Valuable Brands” (Forbes, 2013-2019)
� Net Revenue of $26.5 Billion in 2019, Up Seven Percent from Prior Year
� 31,256 Retail Stores in 80 Countries (As of 10.30.2019)
� Fortune 500 Company | 17 Consecutive Years
� Recognized as One of the World’s Most Ethical Companies for the 12th Year in a Row (Ethisphere)
� Headquartered in Seattle, Washington
� Founded in 1971
31,256LOCATIONS
BBB+CREDIT RATING
20-YearTERM
NNNLEASE
STARBUCKS.COMTenant/Guarantor: Starbucks Corporation
� Complete Auto Care Service
� 1,700 Retail Locations Nationwide
� Headquartered in Nashville, Tennessee
� Founded in 1900
�World’s Largest Tire and Rubber Company
� Purchased Firestone in 1988
� $3.52 Billion in Net Income (2019)
� Enterprise Consists of Over 50 Production Facilities in the USA
� Publicly Traded Company: BRDCY | OTCMKTS
� “A” Standard and Poors Credit Rating
� Headquartered in Nashville, Tennessee | Founded in 1931
1,700LOCATIONS
150COUNTRIES
20-YearTERM
GroundLEASE
FIRESTONE.COM
TENANT PROFILE
Tenant/Guarantor: Levy Round Lake Beach LLC
TENANT OVERVIEWS
� Number Five on the Entrepreneur Franchise 500 in 2017 Tenant Jimmy John’s
� Franchised Restaurant Chain Tenant/Guarantor JJ Severson Affiliates Five, Inc
� Ranked Franchise 500 Top Brand and Top Food Franchise (Entrepreneur) Number of Locations 2,700+
� Operating Over 2,800 Stores in 48 States
� 98 Percent Franchise Owned
jimmyjohns.com � Headquartered in Champaign, Illinois | Founded in 1983
� Incorporated in 1994 Tenant T-Mobile
� $44.9 Billion Annual Revenue in 2019 Guarantor T-Mobile LLC
� Highest Ranked Customer Service Performance (J.D. Power Wireless) Number of Locations 20,100
� A Leader in Global Communications Stock Symbol | Board TMUS | NASDAQ
� 322 Million Users Subscribers Credit Rating | Agency BB+ | S&P
tmobile.com � Located in 19 Countries
� World’s Leading Provider of Chiropratic Services in the Chicago Market DBA Chiro-One Wellness Center
� 46 Locations in Illinois and Three in Milwaukee, Wisconsin Tenant/Guarantor TVG-Medulla
� Plans for Continued Expansion Number of Locations 49
� Ranked Number 17 on Modern Healthcare’s List of “Healthcare’s Hottest”
� Over 25,000 New Patients | Over Half a Million Patient Vists Each Year
chiroone.net � Founded in 1992
� 2018 “Fastest-Growing Franchises” (Entrepreneur Magazine) Tenant Sports Clips
� Top 10 “Best Franchise” to Buy for Investment Category (Forbes) Guarantor Tag Team LLC
� Over 1,800 Stores Across the United States and Canada Number of Locations 1,800+
� Operating Since 1993
� 80 Consecutive Quarters of Same Store Sales Growth
sportsclips.com � 99.7 Percent Franchise Continuity Rate
� Third Largest Pizza Chain in the United States Tenant Little Caesars
� Best Knowns for its “Hot-N-Ready” Pizzas Tenant/Guarantor Little Caesar Enterprises, Inc
� Only Major National Pizza Chain that Makes Dough Fresh In-Store Daily Number of Locations 5,463
� Produces Nearly Three Million Pizzas a Day
� Founded in 1959, Headquartered in Detroit, Michigan
littlecaesars.com
� Fast, Casual and Fresh Mexican Food Tenant Chipotle Mexican Grill, Inc.
� Opened 140 New Restaurants in 2019 Tenant/Guarantor Chipotle Mexican Grill, Inc.
� Revenue Increased 14.8 Percent to $5.6 Billion (2019) Number of Locations 2,500+
� Comparable Restaurant Sales Increased 11.1 Percent (2019) Stock Symbol | Board CMG | NYSE
� Founded in 1993
chipotle.com
� Nail and Waxing Salon DBA Nail Cafe Beach
� 4.1 Star Rating on Google Tenant/Guarantor 2BS Corporation/Personal
Number of Locations 1
nailcafebeach.com
TENANT OVERVIEWS
LOCATION HIGHLIGHTS | ROUND LAKE BEACH, IL
Excellent Demographics | Population of 78,341 Within Three Miles of Subject Property
• Anticipated Five Percent Population Increase by 2023
Affluent Area | Average Household Income Within Five Miles is $106,318
Many New and Redeveloped Commercial Properties, Especially Along Rollins Road
Serviced by a Metra Station, North Central Service Line | 1,684,357 Annual Ridership
Awarded the Certificate of Achievement for Excellence in Financial Reporting (GFOA 2017/2018)
Awarded the Distinguished Budget Presentation Award for (GFOA 2009-2017)
Home to Round Lake Beach
Subject Property
Lake Michigan
Downtown Chicago
REGIONAL MAP
DEMOGRAPHICSPopulation 1-Mile 3-Miles 5-Miles
2018 Population 10,626 78,341 150,815
2023 Population 11,236 82,180 163,662
Households 1-Mile 3-Miles 5-Miles
2018 Households 3,121 25,512 51,373
2023 Households 3,375 27,309 56,396
Daytime Population 1-Mile 3-Miles 5-Miles
2018 Population 6,961 51,747 117,610
Income 1-Mile 3-Miles 5-Miles
2018 Median HH Income $79,825 $74,792 $82,263
2018 Average HH Income $93,861 $94,786 $106,318
AERIAL
E Rollins Rd33,000 VPD
Grayslake North High School
Country Walk Park
Lakewood Park
Route 8323,250 VPD
Hook Dr5,200 VPD
N Orchard Ln
NCS Line 1,684,357 Annual Ridership
Renwood Golf Round Lake Beach
Avon School
Post Office
Subject Property
AERIAL
Subject Property
NCS Line 1,684,357 Annual Ridership
E Rollins Rd33,000 VPD
Route 8323,250 VPD
Hook Dr5,200 VPD
SITE PLAN
Pylon
Route 8323,250 VPD
Hook Dr5,200 VPD
CONFIDENTIALITY AGREEMENT
The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.
NON-ENDORSEMENT NOTICE
Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2020 Marcus & Millichap. All Rights Reserved. Activity ID: ZAA0670636
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EXCLUSIVELY LISTED BY
BROKER OF RECORD
STEVEN WEINSTOCKChicago Oakbrook(630) [email protected] 471.011175
SEAN SHARKOSENIOR VICE PRESIDENT INVESTMENTSChicago Oakbrook(630) [email protected] IL 471.010712
AUSTIN WEISENBECKSENIOR VICE PRESIDENT INVESTMENTSChicago Oakbrook(630) [email protected] IL 475.140200
ADRIAN MENDOZAFIRST VICE PRESIDENT INVESTMENTSChicago Oakbrook(630) [email protected] IL 475.147980
